Perth-based engineer and constructor, Monadelphous (ASX:MND) is looking to iron ore and gas to support Western Australian project activity as it tries to recover from the loss of a large lithium contract from US giant, Albemarle.

The group revealed a solid 16 per cent increase in annual net profit to $62.2 million on Tuesday for the year to 30 June.

Revenue for the year was up 17 per cent to $2.02 billion.

MND will pay a fully franked final dividend of 33 cents a share, up from 25 cents a year ago. That took the full-year dividend to 58 cents a share, from 50 cents in 2022-23.

The latest lift to the dividend might be as good as it gets for a while after the severe blow from Albemarle's cuts.

And, with iron ore under pressure from weak prices and demand from China – and quite a few marginal suppliers facing a tough decision in coming months – those hopes of CEO Zoran Bebic may be hard to meet.

But he's optimistic, saying in the annual results release, "Prospects remain positive in resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects making up an increasing share of capital expenditure, and the pipeline of renewable energy opportunities expanding."

Monadelphous lost up to $85 million in forecast revenue for the 2025 financial year after Albemarle scrapped its construction contracts for the Kemerton lithium hydroxide expansion project in south-west WA.

Other bad news from the lithium sector is rumoured, with many in the sector awaiting Wesfarmers' annual results next week and an update on its Mount Holland mine and refinery project JV with SQM, the large Chilean producer (and second behind Albemarle), which is due to report its June quarter figures next week as well.

But the commentary from the company was upbeat.

Monadelphous said its strong performance reflected continued strong demand for maintenance services and higher levels of activity in the engineering construction sector. The company secured more than $3 billion in new contracts and extensions during the year. The company said it had a cash balance of $225.9 million, despite the acquisition of Perth-based structural concrete business Melchor Contracting.

That cash pile will be very handy if a resources winter hits WA this year off the back of persistently low iron ore prices. Only gold is shining, and those projects are smaller in size and budget compared to the large lithium and iron ore mines and processing operations.

Investors ignored the downside and bid the shares more than 10 per cent higher on Tuesday.